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Yesterday’s new mortgages data from the Australian Bureau of Statistics (ABS) contained more bullish news for Australian house prices with both owner-occupied and investor mortgage demand rising in November, continuing the solid rebound that began in mid-2019 following the federal election:
As shown in the next chart, there is a very strong correlation between new mortgage growth and the growth in dwelling values, with mortgages typically the leading indicator:
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Therefore, the ongoing rebound in mortgage demand should propel dwelling values higher over the immediate horizon.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.